royalco resources, page-8

From a strategy perspective, it seems a nice fit. A copper/Gold mine in the Phillipines, while not the best as far as soverign risk goes, is better than Africa.

The Toro investment appears to be, from reading the newspapers, a way to get to BFS for Wiluna for TORO, consolidation in the Uranium market would potentially mean that TORO would get bought out and OZL would make a tidy sum.

From a strategy perspective, my guess is the plan is.

a) Grow P Hill - extend mine life and increase tpa (little cost)
b) Bring Cambodia Gold on stream (my guess on cost USD200 to $300m)
c) Develop and mine phillipines Copper (my guess on cost $USD1b)
d) Divest Toro when appropriate

If this is the plan, then managing cash flow will be importnat, so I can see why they are cautious about share buybacks. The speed of execution will be the issue. P Hill is gnerating about $400m annually of free cash flow. They certainly have the ability to go hard in their plans if they wish.

The speed of execution would flow thorugh to sp appreciation as analysts corrected their models.

(Just need to bring the cash back to Aus at the next correction of the AUD)

HT1